Ansal Properties challenges NCLT direction to initiate insolvency proceedings

Ansal Properties and Infrastructure Ltd on Thursday said it has challenged an NCLT order that allowed insolvency proceedings against the company for default.

"The company has filed an appeal against the aforesaid order before NCLAT, which has been partly heard today and part of the matter has been adjourned for tomorrow morning, the 20th March, 2020," said Ansal Properties and Infrastructure in a regulatory filing.

On March 17, the National Company Law Tribunal (NCLT) has allowed a plea to initiate insolvency proceedings against realty firm Ansal Properties and Infrastructure Ltd and appointed an interim resolution professional replacing the board of the company.

A two-member bench of Delhi-based NCLT has allowed the plea of two of its flat buyers claiming default.

"... the present petition being complete and having established the default in payment of the financial debt for the default amount being Rs one lakh, the petition is admitted," the NCLT said.

It has also appointed Amrapal as the interim resolution professional replacing the board of the company.

The NCLT order came over a plea by two flatbuyers, who had jointly booked a unit measuring 3,764 sq ft project against a total consideration of Rs 1.62 crore at Sushant Golf City in Lucknow.

One of them has also booked a separate unit in the same project.

As per the clauses of the two agreements between them in September, 2014, Ansal Properties and Infrastructure undetook to complete it within two years from the date of commencement of construction on receipt of sanction plan from the authority.

As per the project summary available on the website of RERA, it was to start from September 2015 and as per the agreements, the flat buyers were supposed to get possession in next two years.

However, Ansal Properties and Infrastructure failed to complete the projects and abandoned it in the midway.

After this, home buyers, who are now a financial creditor of the company following amendments in the IBC has approached NCLT.